Brazil’s Caixa Unit IPO Concentrates on Investor Interest – Sources

Caixa Economical Federal Bank is one of the leading banks in Brazil which is under state control. It has enough recognition in the country and is trying to gain some more investors interest in favor of insurance unit. Recently, it initiated its IPO for the first time and is now planning to include its insurance unit into it soon to attract numerous investors. Moreover, it is eager to include the unit as soon as possible so that strong interest of investors can be gained out within no time. Along with gain of investor’s interest, bank’s stock market deals may get improved by increasing the number of investors who are willing to deal stakes. Starting this month, bankers and executives of Caixa Economical Federal bank are working on IPO of Caixa Seguridade Participações SA. Not surprisingly, it got succeeded in attracting a large number of investors towards it, especially, in São Paulo, New York and London. Positive feedback got from the investors is the supporting fact of their success in IPO. This deal gained strong belief of investors and shown the strong impact on Brazil’s stock market with sudden changes took place in trading.

RBI Has Cancelled 3 Out Of 4 Bond Tranches at Auction

The Reserve Bank of India has cancelled out three bonds out of four, which were actually planned for sales on this Friday. The cancelled bonds belongs to the series of sovereign bonds and thus the move made by the RBI was told that it is showing the unwillingness of the government to borrow the bonds at a very high rate and also the government’s position of surplus cash. Marketers and traders also give many other reasons for the move of RBI. But the majority says the same reason of surplus cash and unwillingness.

Rs 15000 crore bond sale offer

RBI has offered a sale of Rs. 15000 crore bonds and the maturities of these bonds range from 9 years to 29 years. But the total sold out bonds by the central bank is just Rs.6000 crore whereas the other three security bonds were cancelled out. The maturity of the bonds sold out was till 15 years. Rate of interest strategist at the SBI DHFI Soumyajit Niyogi has told that the development at a very high yield would be more dampening in this juncture. He also added that both the government and the RBI are doing really an excellent job to restore the market confidence and to balance the government’s borrowing cost.

Many traders in the Mumbai stock exchange have accepted the fact that the RBI is doing this move to achieve the restoration if confidence in the market. The greater changes that were affected the market recently were found to be acting still more badly and hence the RBI doesn’t want the situation to prevail any more. Thus it has taken a decision to cancel out 3 of their security bonds which were about to be sold in the market on this week. This move would also help the government to prevent itself from higher rates. This move makes sense that the government has surplus cash now.

Greek’s fate is enough for the cautious investors to stay

A meeting that would be scheduled in the weekend would be helpful in deciding the Greek’s fate, which was a reason behind the cautious investors to stay in the market. These cautious investors were the one who asked for the prices with lot and risk and big uncertainties in it. If the creditors in Greece are agreeing to give a fresh lifeline for the country, then it will really relieve apprehension in the global market. The yields from the domestic bonds may also fall by pushing the prices up. This is to do with government borrowing, which is low or may be the government supply also that would be added to firm up.

Last month, the primary dealers, who were underwriting the weekly auctions just by buying the unsold portions of it were made to pick up a debt of worth Rs. 3301 crore. RBI has also rejected bids, which was around Rs.8000 crore of the Treasury bill. It has also rejected the securities of sovereign debt which was just short terms.